Mama’s Eggs
A complimentary case study for chapter 11, Operations and Supply Chain Management, Bozarth et al….
Mama was well known around town and was even better known for her cooking. She had opened her restaurant 6 years ago and it was THE place to go for the best homecooked food in town. Mama had a kindness that could be found in all her foods.
Mama was busy. She not only owned the business, but was head cook and the host all at once. She was up at 5am and by 6am the restaurant was open. Her hearty breakfasts were legend, but of course that was just the beginning. She also had the lunch and dinner rush to deal it.
The all-day breakfast was quite popular especially amongst the local early risers, including the truckers and floor workers at the auto plant. Her number one food input was the egg (Mama would say her eggs are an “art” of all her recipes). She had a local supply contract with a nearby egg farm, and she picked up eggs at 72 (6 dozen) at a time. The egg supply farm was a pretty large operation and had to supply bulk quantities, so the minimum order increment was always 6 dozen eggs.
One September, Mama was planning her month. She would go to the egg farm every Saturday and pick up her eggs for the coming week. She had established that she would use about 600 eggs per week. Also for September, the town labour day parade came right by the restaurant, and this always lead to an increase in demand.
Further, Mama had heard the that the local union may be planning a wildcat labour intervention if talks with a local factory didn’t go well. She knew what this meant; a picket line filled with hungry men and women, all potential customers.
She was comfortable with seeing her egg inventory run down, but by Friday she would be around 12 dozen left with her busiest day in front of her. She had never run out of eggs except that one time. But she prefers no to talk about it. Even customers dare not bring it up.
Although the farm has offered to deliver her eggs, Mama prefers to pick them up. Still on occasion she has used this service although it takes two days for them to place an order and for her to take delivery. She finds these two days could cut into her remaining egg inventory.
Her grandson is interested in her business and wants to help. As a recent graduate of an Operations course, he feels he can support Mama with her inventory management. The first thing he does is implement an accurate measurement of food used on a weekly basis. He finds that eggs are used as per the following. However, this is from Mama’s memory, as she does not track all her weekly usage.
Week Eggs Consumed
1 585
2 620
3 560
4 620
5 606
6 590
Questions
1) What types of inventory is Mama facing this September? Make sure you provide the definition of the types of inventory and justify your answer based on the hints given in the case study.
2) What does the 6 dozen, order increment do to impact Mama’s ordering practises? What motivates Mama to order from this supplier?
3) What type of inventory back up can the store use to supplement their inventory. How can Mama improve her inventory practices and offer more accurate data to her grandson?
4) Her grandson asks Mama if it would be ok to run out of eggs 10% of the time. “No way!” She cried. “I never run out of food. That it be a sin!” He then suggests a 1% likelihood of running out, and Mama agrees with this service level. What are, the equivalent Z-scores for these two service levels?
5) Given Mama’s eggs sales in the past, calculate the restocking point.
     What would the restocking points be if the service level was based on the service levels as per Q#4
6) What are the implications of these two restocking points?
    To calculate standard deviation, use the formula from text
7) With a service level of 2.33, if the restaurant had 100 eggs left over, what would the order for eggs be
8) If the weekly egg usage was exactly 576 eggs that were consumed every week, using the Restocking formula, what would the safety stock requirement be? Why?

KFC is fixing a mistake it has been making for years KFC knows it has lost customers' trust. Now it is debuting a new programme to win Americans back. "Customers were saying, 'Your food doesn't taste the same,'" Jason Marker, KFC's US president, said Monday in a press event. "We're not making the food the same way the Colonel had, and we're not making food in what he described as 'the hard way.' Today marks the end of that." The chicken chain is undergoing a process it is calling "Re-Colonelization" — a public recommitment to quality involving employee retraining and a new satisfaction guarantee. Effective immediately, if customers aren't satisfied with their KFC order, the restaurant will remake whatever aspect of their meal fell short. The chain has rolled out an extensive "chicken mastery certification" program, spending more than 100,000 hours retraining more than 20,000 employees. The retraining involved 43 rallies across the US, attended by more than 97% of restaurant general managers. National training events were also held in every KFC location in the US. More broadly, KFC has been trying to turn business around by updating its restaurant design, with plans to remodel 3,000 locations in the next three years. Its Colonel-centric marketing campaign, launched in 2015, is another piece of the puzzle in presenting KFC as a brand that is in touch with its culinary roots. New menu items, such as the Nashville hot chicken, have similarly emphasized the importance of creativity and wellcrafted recipes. KFC's domestic business has struggled in recent years, with Marker comparing the brand to a football team "that was once great." As rivals such as Chick-fil-A have exploded in the US, KFC hasn't been able to keep up with modern, fast-casual-influenced customer demands. According to KFC chief marketing officer Kevin Hochman, only two in five millennials have even visited the chain. BACHELOR OF COMMERCE YEAR 3 – ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE 30 REGENT BUSINESS SCHOOL (RBS) – JANUARY 2018 "I think it's fair to say that we haven't been living up to the standards or the philosophy of Colonel Sanders himself," Marker said. The Re-Colonelization — and the repositioning of the Colonel as a figure of authenticity at the center of the brand — attempts to recalibrate KFC by returning to its roots. In an era when consumers are craving authenticity, the Re-Colonelization could be just what the brand needs to jump-start its business in the US. QUESTION ONE [25] With reference to the case study of KFC above, critically discuss how KFC is adopting Total Quality Management principles, practices and techniques to address the challenges experienced. Your answer should reflect on the relationship between TQM theoretical constructs and its application at KFC.

Correspondence Assignment

From your college years, you have hands-on experience with a wide range of social media tools, having used them to collaborate on school projects, to become involved in your local community, to learn more about various industries and professions, to research potential employers during your job search, and to stay in touch with family and friends at home. In fact, without social media, you might've never heard about your current employer in the first place. Moreover, your use of social media on the job has already paid several important dividends, including finding potential sales contacts at several large companies (which you referred to the sales department), connecting with peers in other companies to share ideas for working more efficiently, and learning about some upcoming legislative matters in your state that could hamper your company's current way of doing business.

You hoped that by setting an example through your own use of social media at work, your new colleagues and company management would quickly adopt these tools as well. However, just the opposite has happened. Waiting in your e-mail inbox this morning was a message from CEO Nicholas Meyer announcing that the company is now cutting off access to social networking websites and banning the use of any social media at work for all employeesexcept employees in the sales, marketing, and public relations departments. The sales, marketing, and public relations departments retain access to all social media tools in the new policy. The message says that for other employees using company time and company computers for socializing is highly inappropriate and might be considered grounds for dismissal in the future.

Your task: You fight the urge to fire off a hotly worded reply to the CEO about how social media is used by other departments to support the company's success. Instead, you decide to send an email to your immediate superior Anna Abrams that explains why you believe the new policy should be reversed. Using your supervisor's favorite medium, write an email explaining why Facebook, Twitter, and other social networking technologies are valid and valuable business tools and ask for action within your reader's scope of power.

Note, this situation or scenario is the most complex of the ones you have completed this semester. Notice that you're writing to an immediate supervisor about a policy that someone at an even higher level (the CEO) wrote. For this situation, take time to consider the power levels of everyone involved. In particular, consider carefully what action you should ask for (and how) and what kind of information your primary (and secondary) reader(s) would need to be persuaded to act. Consider, too, how your primary reader might use your message.

Chapter Case: Campus Bikes

Campus Bikes is a popular bicycle shop located near a major university. The business has grown and the owner, Mark Turner, wants to install an up-to-date computer system to handle all business functions.

Background
Campus Bikes sells several brands of new bikes, including everything from high-end racing models to beach cruisers. In addition to sales of new bikes and accessories, Mark’s service department is always busy. The staff includes Mark himself, a bookkeeper, two part-time sales reps, a full-time mechanic, and several part-time service helpers who assemble bikes.

Before opening the shop three years ago, Mark worked for many years in his father’s auto dealership, Turner Motors, and he learned all about the automobile business. In the bike shop, he runs a similar operation, but on a much smaller scale. For example, sales orders are recorded on pre-printed forms, and service requests are written up just as they would be in an auto service department.

Mark’s customers find him fair and reasonable. He likes to say that the main difference between his business and a big-box retailer is that he knows his customers and will do whatever it takes to keep them happy.

You work at the college as a lab assistant in the computer information department. You earned a computer science degree at a two-year school, and you recently decided to work toward your four-degree. The computer lab manager, Jill, often suggests that local businesses contact you for help in troubleshooting IT issues.

This morning, you received a call from Mark, who wants to hire you as a consultant to help plan a system for Campus Bikes. You learned that Jill had referred him, and you are excited to have this opportunity. It probably didn’t hurt that both you and Jill had bought bikes from Mark, and already knew him. After spending several weekends talking with Mark and the staff, you are ready to start. You decide to use an object-oriented approach that will be easy to understand.

Tasks
1. List possible objects in the new bike shop system, including their attributes and methods. Do not draw a diagram for this. Just a three column list will be appropriate.
2. Identify three possible use cases and actors.
3. Create a use case diagram that shows how service requests are handled. This diagram should be drawn similar to Figure 6-16 on page 189 of the text. Be sure to use the actors and use cases appropriate for this case as detailed above.
4. Create a state transition diagram that describes typical customer states and how they change based on specific actions and events. You can find an example of a state transition diagram in Figure 6-21 on page 192 of the text.

Question text

Scenario: Helen has been tasked with negotiating a new contract with the office's internet carrier. She contacted three internet providers, gathered bids, researched reviews, and did a comparison chart. She decided to sign with a new internet provider.
Did Helen demonstrate characteristics of effective problem-solving and decision making? Select all that apply.

Select one or more:

a. Yes, Helen was able to remain neutral

b. Yes, Helen gathered all the information

c. Yes, Helen analyzed the information

d. Yes, Helen considered all the possible solutions

e. No, Helen was emotionally attached

Question text

Top Notch software has a customer who isn't happy with their service. The issue with the customer's software seems to be user error. What is the problem in this scenario?

Select one:

a. The customer did not read the user manual

b. The company has an unhappy customer

c. The customer is not listening

d. The customer needs a replacement software

Scenario: Lee is the general manager for The Mattress Store. His best sales associate, Ben missed his monthly goal by one mattress this month. It is unusual for Ben to miss his goal; he was out for a week with the flu. Unfortunately, Ben did not earn his bonus for the month. Ben is upset and threatens to quit if Lee does not make the exception since Ben had the flu. The rules are clear, and bonuses are paid to those who meet their sales goal. However, Lee does have the authority to make exceptions to the rule.
Should Lee involve others in making this decision? Choose all that apply:

Select one:

a. Yes, Lee should involve the accounting department in his decision.

b. Yes, Lee should involve the payroll department in his decision.

c. Yes, Lee should involve HR in his decision.

d. No, Lee has the information he needs to make the decision on his own

Question text

Scenario: Stanley transferred from the northside location to the southside location and accepted a promotion to manager of the store. On his first day in his new role as manager, an employee approached Stanley and asked if she could leave two hours early to attend her son's school play. She said that the previous manager always lets her leave early. Stanley does not know how to respond.
Should Stanley involve others in his decision? Choose all that apply.

Select one or more:

a. Yes, Stanley should find out if it is appropriate to grant her request.

b. Yes, Stanley should consult the other employees of the department.

c. Yes, Stanley should involve the manager of accounting.

d. No, Stanley has the information to make the decision on his own

Alex is a single man who works for Dogs-R-Us, an animal breeding and training company specializing in finding the perfect home for each pet. Alex has a daughter, Abigail, who is 7 years old. The following financial information for 2019 is provided for you below. Alex is looking to supplement his income by starting a side business of selling products for pets:

Alex's Wages for Dogs-R-us are: 68,600

-Federal taxes withheld: $4,218
-Social Security taxes withheld: $4,714
-State income taxes withheld: $2,354
-Alex paid $2,200 in interest on his student loans in 2019
-Alex’s employer provided healthcare coverage for him and his daughter. The healthcare coverage premiums cost Alex $1,000 over the course of the year, while the employer incurred an additional $6,875 for the healthcare coverage premium for Alex and his daughter Abigail. Alex’s healthcare coverage premiums were taken out of his check on a pre-tax basis.
-Alex incurred an additional $625 in premiums for dental and vision plans. These amounts were also taken out of Alex’s gross pay on a pre-tax basis.
-Alex had an additional $3,625 taken out of his check for his contributions to an employee sponsored 401K plan. The amount was taken out on a pre-tax basis. The employed matched the $3,625 contribution to Alex’s 401K plan.
-Alex receives $2,000 in qualified dividend from Apple Co.
-Alex paid $2,600 in dependent care expenses for school and after school care for his daughter Abigail. These payments were made to the local elementary school.
-Alex paid $4,200 in mortgage interest for 2019.
-Alex also incurred an additional $1,200 of out of pocket dental expenses this year, which was his only medical expense.

2. Proposed Business: Alex has crunched a few numbers and the following is expected for his pet product company:

1. Gross receipts of $28,500 in the first year.

2. Cost of Goods Sold: $10,850

3. Home Office Expense: $800. Alex plans to devote a back room in his home to storing

   products.

4. Laptop Purchased 2 years ago for $1,800. Alex intends to convert this laptop to

   business use to keep track of accounting, handle internet orders, etc. The laptop is

   currently valued at $663.

5. Tablet Purchased for Christmas: $375. Alex lets Abigail use it for homework and

   learning, but assures you that he only uses it for the business, to keep track of

   customer orders on Facebook.

6. Pet care equipment currently valued at: $8,500. While Alex does use some of the

   product for his own pets, he believes that 80 percent of the time, the equipment will be used for clients’ pets. The equipment was purchased last year for $7,250, but not used.

1. Complete a tax return for Alex without his proposed business.
2. Complete a tax return for Alex with his proposed business.

1. When Michael Oher arrived at Briarcrest Christian, he had very little in the way of education. What in his life failed him the most? His mother? The educational system?

Social services? Himself? What was the biggest obstacle to his success? What could have he done differently in his childhood -- if anything -- to avoid the educational and social void in which he found himself?

2. Before coming to Briarcrest, Michael Oher had no traditional support network, yet a number of people did help him out -- by letting him sleep on their floors, bringing him to

Briarcrest Christian, allowing him to enroll in the school, etc. Why did they help him?

3. Leigh Anne Tuohy took Michael Oher in and embraced him as her son, despite his different background and race. Given similar circumstances, would you do the same?

4. Leigh Anne takes in a boy who is homeless and helps him to be a success. In doing so she has to face criticism from her friends. Why do you think her friends were so quick to criticize? How would you have handled that situation? Do you think it is important to help those that are less well-off then you? Why?

5. Teachers at Briarcrest discovered that Michael Oher was not “stupid”, but rather had trouble learning in a classroom. What does that mean?   Are there any things that you find difficult learning in a “standard” environment?

6. What do you think of the fact that Michael Oher was allowed to take tests orally rather than written ones? Should schools make exceptions for students who have unique issues? Briarcrest Christian is a private school -- would a public school have the resources to operate as Briarcrest Christian did in Michael Oher’s situation?

7. Michael Oher’s success story was made possible, in part, because he had a talent for playing football. What if his talent had been for playing piano, or cooking, or building

furniture? Would he still have been able to rise out of poverty? Why or why not? Do disadvantaged kids who are good at sports have more opportunities than kids who

don’t, and if yes, is that fair -- or just fortuitous?

8. The Tuohys were criticized by people who thought that they must have been using Michael Oher for some purpose. Do you think they were? What was their motivation?

9. Michael Oher was adopted by a rich family and suddenly touted as one of the top football prospects in the country. Yet by all accounts, he remained grounded. What was most responsible for keeping him that way?

1. A closer look - Food insecurity in the United States

According to the United Nations Food and Agriculture Organization, approximately 795 million people are chronically undernourished worldwide. Undernutrition means that a person consumes insufficient energy to meet his or her metabolic needs. Many food security organizations set this minimum at 2,000 kcal/day for a person to be well nourished.

Examine the figure depicting the food security status of U.S. households and then answer the question that follows.

1. According to the definitions used by the USDA Economic Resource Service, what percentage of U.S. households had access, at all times, to enough food for an active, healthy life for all members?

86%

5.6%

8.4%

14%

2. According to the U.S. Department of Agriculture, a rib eye steak has an energy density of approximately 2,650 kcal/kg. A person could conceivably consume 730,000 kcal/year simply by eating 275.5 kg of steak over the course of a year, or 26.5 oz every day. Would a person who did this be likely to be properly nourished, and why or why not?

No; 730,000 kcal/year is not enough food to avoid undernutrition.

No; beef is too fattening. The person would probably suffer from overnutrition.

Yes; 730,000 kcal/year is a reasonable minimum level of consumption to avoid undernutrition.

No; beef lacks some essential nutrients. The person would probably suffer from malnutrition.

3. There are many federal and local programs in the United States that aim to prevent or relieve malnutrition or undernutrition, thereby reducing the prevalence of food insecurity. Match the programs below with their major role in promoting adequate nutrition and increasing the prevalence of food security in the United States.

4. The following two images show maps of the United States: The map on the left depicts prevalence of food insecurity relative to the U.S. average from 2012–2014; the map on the right depicts poverty rates throughout the United States from 2014.

5. Which region of the United States has the highest prevalence of food insecurity?

South

Southwest

Northwest

Northeast

6. Which region of the United States has the highest level of poverty?

Northwest

Southwest

South

Northeast

7. After analyzing the maps, one can conclude that higher poverty levels are linked with:

Higher levels of food security

Have no effect on food security

Lower levels of food security

The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the highest level of education attained by the test taker's parents. A research hypothesis was that students whose parents had attained a higher level of education would on average score higher on the SAT. The overall mean SAT math score was 514.† SAT math scores for independent samples of students follow. The first sample shows the SAT math test scores for students whose parents are college graduates with a bachelor's degree. The second sample shows the SAT math test scores for students whose parents are high school graduates but do not have a college degree.

(a)

Formulate the hypotheses that can be used to determine whether the sample data support the hypothesis that students show a higher population mean math score on the SAT if their parents attained a higher level of education. (Let μ₁ = population mean verbal score of students whose parents are college graduates with a bachelor's degree and μ₂ = population mean verbal score of students whose parents are high school graduates but do not have a college degree.) For purposes of this study, assume the population variances are unequal when conducting the t-test.

H₀: μ₁ − μ₂ ≥ 0

H_a: μ₁ − μ₂ < 0

H₀: μ₁ − μ₂ < 0

H_a: μ₁ − μ₂ = 0

H₀: μ₁ − μ₂ = 0

H_a: μ₁ − μ₂ > 0

H₀: μ₁ − μ₂ ≠ 0

H_a: μ₁ − μ₂ = 0

H₀: μ₁ − μ₂ = 0

H_a: μ₁ − μ₂ ≠ 0

(b)

What is the point estimate of the difference between the means for the two populations?

(c)

Find the value of the test statistic. (Round your answer to three decimal places.)

Compute the p-value for the hypothesis test. (Round your answer to four decimal places.)

p-value =

(d)

At

α = 0.05,

what is your conclusion?

Reject H₀. There is insufficient evidence to conclude that higher population mean verbal scores are associated with students whose parents are college graduates.Do not Reject H₀. There is sufficient evidence to conclude that higher population mean verbal scores are associated with students whose parents are college graduates.      Do not reject H₀. There is insufficient evidence to conclude that higher population mean verbal scores are associated with students whose parents are college graduates.Reject H₀. There is sufficient evidence to conclude that higher population mean verbal scores are associated with students whose parents are college graduates.